Decentralized Mechanism Design for Supply Chain Organizations Using an Auction Market.

Author List: Fan, Ming; Stallaert, Jan; Whinston, Andrew B.;
Information Systems Research, 2003, Volume 14, Issue 1, Page 1/22/2017.
Traditional development of large-scale information systems is based on centralized information processing and decision making. With increasing competition, shorter product life-cycle, and growing uncertainties in the marketplace, centralized systems are inadequate in processing information that grows at an explosive rate and are unable to make quick responses to real-world situations. Introducing a decentralized information system in an organization is a challenging task. It is often intertwined with other organizational processes. The goal of this research is to outline a new approach in developing a supply chain information system with a decentralized decision making process. Particularly, we study the incentive structure in the decentralized organization and design a market-based coordination system that is incentive aligned, i.e., it gives the participants the incentives to act in a manner that is beneficial to the overall system. We also prove that the system monotonically improves the overall organizational performance and is goal congruent.
Keywords: Auction; Complementarity; Coordination Mechanism; Decentralized Information System; Supply Chain
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#277 0.273 structure organization structures organizational centralized decentralized study organizations forms decentralization processing communication sharing cbis activities appropriate provide identify organizing communications
#170 0.192 information processing needs based lead make exchange situation examined ownership analytical improved situations changes informational examine developed receive perceptions facilitates
#52 0.110 supply chain information suppliers supplier partners relationships integration use chains technology interorganizational sharing systems procurement buyer interfirm coordination enterprises flexibility
#287 0.108 design systems support development information proposed approach tools using engineering current described developing prototype flexible built architecture environment integrated designing
#8 0.098 decision making decisions decision-making makers use quality improve performance managers process better results time managerial task significantly help indicate maker
#89 0.069 product products quality used characteristics examines role provide goods customization provides offer core sell key potential stronger insights design initial
#204 0.062 goals goal research setting achieve accounting behavior multiple meet make constraints differing ability particularly association set single conflicting promotes and/or